In a Chapter 7 bankruptcy, you have three options with a secured debt as previously discussed in this blog: redemption, surrender, and reaffirmation. If you would like to retain your secured property, such as a house or vehicle, almost 99% of people choose reaffirmation, where you agree to continue making payments to the creditor of that debt. If you are leasing a vehicle, there is obviously no equity in the vehicle because there is no ownership. Therefore, the bankruptcy trustee cannot seize the property to settle creditor claims, and therefore, if you wish to retain the automobile, you can simply execute an assumption of the lease with the creditor, and your payments will continue just as they were prior to the bankruptcy filing.
http://www.westmontattorneys.com/Bankruptcy/
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